There’s no better way to show your loved ones how much you love them than to leave them with adequate money to live after you’ve passed away. Life insurance is the last gift you can give them that they will appreciate the most.
If this is true, then why do over a million people in the United States lack adequate life insurance?
Life insurance costs feel overwhelming on top of the costs of daily living. After all, how can a dad protect his family with adequate life insurance when he struggles to pay his monthly bills?
The average cost of life insurance may be less than what you’d imagine. It’s time to begin exploring life insurance rates.
Age
Insurance companies are experts in calculating risk. If you are young, you are less likely to die anytime soon. This means your life expectancy plays a big part in the cost of your monthly life insurance premiums.
If you are older, conversely, you should expect to pay more for your premiums.
Your age will also determine how much coverage you’ll receive. Some life insurance companies offer limited life insurance for a given period of time for seniors. You can buy a term life insurance policy up through age 80 typically as well. Cash value life insurance policies can also have a maximum age.
Health
Your genetics as well as your general health play one of the biggest factors in life insurance prices. If you have a health condition that makes you a big risk, some life insurance companies will not cover you or they will charge expensive premiums.
An insurer can access your health information by having you go through a life insurance medical exam. With your permission, they can access your medical records as well as prescription drug databases to see the medications you’ve taken.
Here are some of the most common things an insurance company will look at to determine your health.
- Weight
- Height
- Medical history
- Risky behaviors
- Hereditary conditions or family medical history
Sometimes you can find a life insurance company that offers no-exam life insurance. This means you do not have to take a medical exam. Often, though, you’ll have to pay more for your life insurance.
No-exam life insurance includes insurance types such as instant life insurance, simplified issue life insurance, and guaranteed issue life insurance. In each of these cases, you’ll have to pay a bit more for the policy, but you are doing so with the understanding that you can avoid a medical exam.
No-exam life insurance is a good option for individuals who have chronic conditions or are older and perhaps prone to some conditions that typical life insurance would raise a red flag.
Gender
Because women typically live at least five years longer than men, men will often pay more for life insurance than women. Men will need the death benefit payout sooner. The insurance company is thus estimating they’ll receive fewer payments from men, and they make the premiums higher for men.
Lifestyle
When you apply for life insurance, you will have to answer questions about your lifestyle. Be prepared to answer questions about the following parts of your life:
Criminal Record
If you have a criminal record, you may not be eligible for life insurance at all. Typically, insurance companies require a 10-year waiting period if you’ve been charged with a felony and a five-year waiting period when you receive a DUI charge. You also may have a higher premium because of your criminal record.
Driving History
Insurance companies will look at your driving history. If you have a reckless driving conviction, DUI, or a history of suspended licenses, you are a high-risk investment. You will have to pay more for your premium.
Dangerous Occupations and Hobbies
An insurance company will consider you high risk if you have a job with hazardous duties. This only makes sense. After all, a daycare provider has the potential for a much longer life than an underwater welder or firefighter.
If you have dangerous hobbies such as skydiving, flying planes, or scuba diving, you may have to pay more for your premium. You’re at higher risk than someone who gardens as a hobby, for example.
Financial Issues
Insurance companies will look into your financial status. If you have filed for bankruptcy within the last five years, an insurance company will red flag your file and possibly decline coverage. Your credit score can also play a part in your insurance coverage.
Type of Life Insurance Policy
The type of life insurance you purchase also determines how much you will pay. You have two choices: term life insurance or whole life insurance.
Term life insurance costs the least while whole life insurance costs the most. Term life insurance is a policy you purchase for a given term, usually 20 years. At the end of the term, you will have to renew the policy.
Whole life insurance costs a bit more because it lasts your entire life, and the insurance company will use the policy as an investment as well as insurance.
You can also purchase riders that help fill gaps. A waiver of premium rider, for example, allows you to stop paying if you’re disabled down the road, yet you keep the same coverage.
Evaluate Life Insurance Costs
Life insurance costs less than you’d imagine. Your age, gender, health, and lifestyle all play a role in how much you’ll pay for insurance. You can give the gift that blesses your family beyond the grave by purchasing lie insurance today.
Are you looking for quality, affordable insurance? Contact us today for a free quote. We have a variety of policies that will work for you.
Let us help you today.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
